The Impact of U.S Sanctions on Iran's Economy

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There exist sharp differences on the political approach of the United States on the best methods of achieving the objectives of the country in Iran. The U.S, however, is faced with challenges regarding national security. The military option has for a long time been the most used approach in dealing with issues and development of policies favoring both Iran and the U.S. Iran has been involved in the foreign policies of the US for a long period. The country had support for the regime of Reza Pahlavi, the hostage crisis in Lebanon and the contra affairs of Iran (Serwer, 2016). The increasing gravity of the matter could be characterized by President Trump's expressions after and prior to the elections. Immediately after the new president established his administration they developed a new strategy for Iran.

            President Obama and Rouhani established one major breakthrough on the relations between Iran and the U.S in 2013 on a resolution on issues on nuclear bombs (O'Connor, 2018). The deal saw the U.S administration rollback on several sanctions that had been imposed on Iran. The deal was welcomed and celebrated by the international community. Progressively, recently President Trump decided to kick into the curb the Iran Nuclear deal as he had pledged during his campaign. The withdrawal by the U.S is to be quickly undertaken with full consistency with the law of U.S. It is inclusive of sweeping of several secondary sanctions on international corporations that conduct any business relations with the Islamic republic. The deal influences many multinational corporations within Europe. Business entities have limited time to decide on whether they are affiliated to the $400 billion Iran economy or $20 trillion of the U.S. that ultimately affects the ability for U.S dollars’ currency transactions as well (Hannah, 2018).


Hannah, J. (2018). Will the End of the Iran Deal Mark the Beginning of an Iran Strategy? Retrieved from

O'Connor, T. (2018). The U.S. and Iran's history of regime change, revolution, and wars. Retrieved from

Serwer, D. (2016). Recalculating U.S. Policy in the Middle East: Less Military, More Civilian. Retrieved from

August 01, 2023


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